It’s a major financial commitment to invest in a holiday home. With that kind of money riding on the transaction you need to be sure that your interests are protected especially since 1) you are a foreigner and not aware of the ins and outs of the real estate industry and 2) you need to be prepared for the hitches and delays that can plague any real estate purchase in any country.

These are just some of the questions that keep people up at night. Have you just seen your dream home? Are you about to sign a purchase contract? Are you sure the property you are buying is all legal? Are you sure the vendor is the rightful owner? Will you get your deposit back in case there is something the matter?

Finding a Lender

Before you even look for a property begin the process by getting a mortgage in principal from a trusted Mortgage lender/ broker. Do this first. With a mortgage approved it will significantly strengthen your offer when you find a property.

Finding a Trustworthy Agent

A real estate agent can really help you with the problems of finding a home. This is especially important if you are buying a property off plan. An off plan is a property which is not yet built and which may not even have planning permission in place.

The criteria of finding an agent is that he must be licensed, he must be part of a respected organization, he must speak English well, and he must be an agent that you trust. It is important to do this before you go rushing off looking for homes or you may end up with no representation.

Finding a Finance Expert

If you are applying for finance in order to buy the property most faults, such as the legality of the build and possible local (council) issues are likely to be discovered. That’s why it’s ALWAYS recommended to have finance on the property even if you don’t need it. If you haven’t prepared the finance and if you haven’t protected yourself by stating the wording mentioned above you can lose your deposit if you decide not to proceed for whatever reason.

Finding a Lawyer

Before you start looking for the property arrange for a solicitor to represent you. He/ she will be needed at the very moment you decide to put in an offer. When you have made an offer and it has been accepted you need to put down a deposit. Unfortunately this is where a lot of people go wrong. If you go it alone it is recommended that you have at least the wording “subject to mortgage and valuation” in the purchase contract.

One website recently ran a piece reporting that experts were predicting that property prices in Spain would “cool” by up to 10% this year. Nothing could be further from the truth. Just look at the newspapers. One newspaper declared that highly qualified professionals, numbering at least 100,000 per year, who are leaving the UK for Spain. And don’t forget the people who are already living in Spain, such as the one million British homeowners-a figure that they say will even increase. In two years there will be over 3 million British homeowners. And a Barclays Bank’s survey, suggested that a further 660,000 British people planned to buy in Spain.

Why Britons love Spain

Why? What is prompting this exodus? The reasons seem to be many; not least that Spain is a great place to live. But that’s not all.

First of all it’s easier to borrow. The mortgage market is maturing. Although we have seen increases in the base “Eurobor” rate the variety of mortgage products available from Spanish and other European lenders are still very appealing to those buying in Spain, particularly those who hail from higher servicing cost regions, such as the UK.

Second of all, the properties are affordable. It’s a “buyers market”. Vendors seem to have realized that they can’t get customers if they have ridiculously higher prices. Furthermore the stiff competition has made them more and more willing to offer “value” services at more affordable rates. If you want to make a sale simple economics are dictating that the best advice may be to drop the price - the demand is there so match it!

Third of all, the development of Spain has been astronomical. It has excellent infrastructure, highways, medical facilities. In fact the hospitals were named to have the fourth highest quality of service in the world. It was only a matter of time before Spain’s property entrepreneurs, prompted by the fierce competition for expat investment, would deliver compelling ways of re-presenting Spain.

These are just some of the reasons why people are flocking to Spain. It is really a very pro buyer environment and there are very few countries that can offer this kind of environment. No wonder the real estate industry is booming. So what are you waiting for? Buy property and see your investment pay off in the next few years. After all this is a once in a lifetime chance, act now!

You can find a mortgage broker, but why should you do it on your own when you can have an expert to guide you through the process. You have a better chance of getting a loan if you have a broker. First of all by going through a professional broker you automatically go to numerous banks. Your broker should have done the legwork for you and sourced the best and the most varied products available on the market. In fact by asking a professional broker to arrange the mortgage for you, you automatically get access to several banks.

Brokers can also help you avoid delays. They know this process inside out and will be able to foresee any hitches and advise you on what to do. . On occasions banks change their criteria and although your estate agent or solicitor may have recommended a particular bank in the past, they may decline your application because of the sudden change. A professional broker will always submit your application to at least 4 banks to avoid this from happening. You could in fact lose your deposit if you don’t complete on the date set in the contract - all because you only went to one bank. See how much time a broker saves you?

Third of all a broker can improve your chances of finding financing. He has a network of banks. These banks/ building societies are simply not available directly to the general public. But he should be happy to arrange for a mortgage in principal for you. With a mortgage approved it will significantly strengthen your offer when you find a property. This would not be available from a bank as a norm. In fact some brokers have special arrangements with banks which you could never get yourself directly.

Broker Fees and other Costs

The broker fee varies quite considerably. Some brokers say they have no fees, but in reality they hide it under other fees. .For example the broker is likely to have an agreement with a bank whereby the set up fee by the bank is unusually high. The broker on these accessions may receive the majority of this set up fee, thereby receiving the extra income from the bank. This is likely to cost you more than the average broker fee. These brokers are not likely to give you a choice of products either.